Climate crisis poses ‘serious risks’ to US economy, warns 40-page report

WION Web Team
NEW DELHI Published: Oct 16, 2021, 03:34 PM(IST)

US President Joe Biden (file photo). Photograph:( AFP )

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As a part of the new plan, the federal government will weigh up climate risks for employee benefit and retirement plan investments

Joe Biden’s administration recently issued a 40-page report warning that the climate crisis “poses serious and systemic risks to the US economy and financial system." It further said that setting out steps for action as “climate impacts are already affecting American jobs, homes, families’ hard-earned savings, and businesses”.

As a part of the new plan, the federal government will weigh up climate risks for employee benefit and retirement plan investments. They will also incorporate climate disasters into lending and budgeting decisions. The building standards will also be revised for homes at risk of flooding. 

US President Joe Biden, in the report, said, "The intensifying impacts of climate change present physical risk to assets, publicly traded securities, private investments, and companies."

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He further added that the climate crisis “threatens the competitiveness of US companies and markets, the life savings and pensions of US workers and families, and the ability of US financial institutions to serve communities."

The new White House plan has been welcomed by environmental groups .

Gina McCarthy, Biden’s top climate advisor, said that the climate crisis “poses a risk to our economy and to the lives and livelihoods of Americans, and we must act now”. 

McCarthy further added, “This roadmap isn’t just about protecting our financial system – it’s about protecting people, their paychecks and their prosperity.”

The report comes in as the crucial Cop26 global climate talks are due to begin in Scotland at the end of the month.

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